Ridge-iTSE:5572 -3.09%56 Gross Margin % is 58.36% as of Jan. 2026, which is 8% below its 10-year median of 63.25. GuruFocus rates TSE:5572 with a GF Score™ of 56/100 and a GF Value™ of 円5,218.69 (Possible Value Trap). The stock has 1 warning sign investors should review. Among 2,681 Software companies, Ridge-i ranks better than 65.24% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Ridge-i's Gross Profit for the
six
months ended in Jan. 2026 was 円671 Mil. Ridge-i's Revenue for the
six
months ended in Jan. 2026 was 円1,151 Mil. Therefore, Ridge-i's Gross Margin % for the quarter that ended in Jan. 2026 was 58.36%.
The historical rank and industry rank for Ridge-i's Gross Margin % or its related term are showing as below:
TSE:5572'
s Gross Margin % Range Over the Past 10 Years
Min: 45.65 Med: 63.25 Max: 68.79
Current: 54.52
During the past 5 years, the highestGross Margin % of Ridge-i was 68.79%. The lowest was 45.65%. And the median was 63.25%.
TSE:5572's Gross Margin % is ranked better than 65.24% of 2681
companies
in the Software industry
Industry Median: 40.41
vs TSE:5572: 54.52
Ridge-i had a gross margin of 58.36% for the quarter that ended in Jan. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ridge-i was 0.00% per year.
Ridge-i (TSE:5572) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Ridge-i had a gross margin of 58.36% for the quarter that ended in Jan. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Ridge-i Gross Margin % Related Terms
Ridge-i Gross Margin % Historical Data
* Premium members only.
The historical data trend for Ridge-i's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSE:5572 vs MSFT, ORCL, PLTR: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Ridge-i's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ridge-i Gross Margin % vs Software Industry
For the Software industry and Technology sector, Ridge-i's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ridge-i's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Ridge-i (TSE:5572) has a Gross Margin % of 58.36% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ridge-i and its competitors. This is near median its historical median of 63.25. Over the past decade, Ridge-i's Gross Margin % has ranged from 45.65 to 68.79. According to the industry distribution chart, Ridge-i ranks #932 out of 2681 companies in the Software industry, placing it in the top 34.8%.
Is Ridge-i's Gross Margin % too high?
Ridge-i's current Gross Margin % of 58.36% is near median its 10-year median of 63.25. Over the past 10 years, this metric has ranged from a low of 45.65 to a high of 68.79. The Software industry median Gross Margin % is 40.41. Ridge-i's value of 58.36% is 44.4% above this industry median. Based on the distribution chart, Ridge-i ranks #932 out of 2681 companies in the Software industry, which is above the industry midpoint. Overall, Ridge-i has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ridge-i's Gross Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Ridge-i ranks #932 out of 2681 companies for Gross Margin %. This puts Ridge-i in the upper half of its industry. The industry median Gross Margin % is 40.41. Ridge-i's value of 58.36% is 44.4% above this benchmark. Historically, Ridge-i's own Gross Margin % has ranged from 45.65 to 68.79 over the past decade. While the company's 10-year median is 63.25 vs. the industry median of 40.41, Ridge-i has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.41, based on 2,681 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ridge-i's current Gross Margin % of 58.36% is 44.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Ridge-i and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ridge-i's current Gross Margin % is 58.36%, which is near median its own 10-year median of 63.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ridge-i stock overvalued right now?
Based on GuruFocus' analysis, Ridge-i (TSE:5572) is currently considered Possible Value Trap. The stock's GF Value™ is 円5,218.69, compared to a current price of 円2,511.00 — trading 51.9% below its estimated fair value. The current Gross Margin % is 58.36%, which is near median its 10-year median of 63.25 and 44.4% above the Software industry median of 40.41. Ridge-i's overall GF Score™ is 56/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Ridge-i (TSE:5572), the current Gross Margin % is 58.36% as of Jan. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ridge-i (TSE:5572) Overvalued in 2026?
Based on GuruFocus' analysis, Ridge-i stock appears to be undervalued.
The current stock price of 円2,511.00 is trading 51.9% below its estimated GF Value™ of 円5,218.69.
GuruFocus considers Ridge-i to be Possible Value Trap.
Key valuation signals for TSE:5572:
Gross Margin %: 58.36% (near median its 10-year median of 63.25)
GF Value™: 円5,218.69 vs. price of 円2,511.00 (51.9% below fair value)
Industry Position: 44.4% above the Software median (#932 of 2681)
No single metric tells the full story. See the TSE:5572 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ridge-i Inc is engaged in the consulting and development of AI/deep learning technology; provision of joint ventures, licenses, maintenance models, products developed in-house and provision of AI analysis solutions using satellite data.
56GF Score
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